1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Bas_tet [7]
3 years ago
8

A company purchased a delivery van for $30,000 with a salvage value of $6,000 on January one, Year 1. It has an estimated useful

life of 6 years or 60,000 miles. The van was driven 13,000 miles in the first year. Using the units of production method, how much depreciation expense should the company recognize on December 31, Year 1
Business
1 answer:
insens350 [35]3 years ago
4 0

Answer:

The depreciation expense for Year 1 under units of production method is $5200.

Explanation:

The units of production method of depreciation charges the depreciation expense based on the activity level for which the asset was used during a period. There is an estimated useful life of the asset in terms of how many units it is expected to produce through out its useful life. The formula for units of production method of depreciation is,

Depreciation charge per unit = (Cost - Salvage value)  /  Total estimated useful  of asset in units

Thus, per unit depreciation is =  (30000 - 6000) / 60000    =  $0.4 per mile

In the first year, the asset is used for 13000 miles so depreciation expense for the year is,

Depreciation expense Year 1 = 0.4 * 13000  =  $5200

You might be interested in
Which of the following guidelines about maintaining a network is false? a. Participate in career fairs b. Use business cards whe
S_A_V [24]

I believe the answer is: end network relationships after you find a job

If you end network relationships after you find a job, you would be automatically considered as rude and that person would no longer contact you in case there is a better opportunity in the future.

Because of this, it is important for you to maintain good networking relationship with as many people as you can to accelerate your career.

4 0
3 years ago
Read 2 more answers
In the _____________ model inflation is caused by owners of resources (including labor) increasing their prices that result in i
dimaraw [331]

Answer:

In the cost-push model inflation is caused by owners of resources (including labor) increasing their prices that result in increases in product prices throughout the economy.

Explanation:

Inflation is an increase in the price of goods and services caused by a number of factors in the economy. There are two major types of inflation models;

<em>1. Cost-push inflation</em>

A cost-push inflation is an increase in prices caused by an increase in the production cost. The increase in production cost can be caused by items such as; cost of labor, raw materials or resources that are useful in the manufacture or operation of other products. This increase in production cost in turn increases the product prices of its associated products.

<em>2. Demand pull inflation</em>

Demand pull inflation is an increase in prices caused by an increase in the demand for the product. When the consumer demand for a certain product increases, the price of the particular product also increases. This is majorly due to the fact that a high demand causes the available supply to diminish leading to limited resources. When the demand supersedes the supply, consumers are willing to pay higher for the product.

8 0
3 years ago
YOU EARNED 96,000 LAST YEAR YOUR EFFECTIVE
HACTEHA [7]

Answer:

WHO U YELLING AT?

Explanation:

5 0
3 years ago
The United States Tobacco Settlement between the major tobacco companies and 46 states caused the price of cigarettes to jump​ 2
Anton [14]

Answer:

B. The elasticity of demand is -0.126

Explanation:

% Change in Quality demand = -2.65% (this is negative because of drop in prenatal smoking)

% Change in price = 21%

Elasticity of demand is given by the formula below:

Elasticity of demand = % change in quantity demanded ÷ %change in price

Elasticity of demand = -2.65 / 21

Elasticity of demand = -0.126

6 0
3 years ago
True or false a central issue of economics is how to fulfill an unlimited demand for goods and services in a world with limited
fredd [130]
The answer is true. Economics is a system invented to supply a certain demand from a population. But the underlying central issue is will the resources last to supply that demand.
4 0
3 years ago
Other questions:
  • ABC Company’s outstanding stock consists of 1,900 shares of noncumulative 5% preferred stock with a $100 par value and 11,900 sh
    9·1 answer
  • Joe quit his job as a salesman where he made $35,000 per year to start his own t-shirt making business. his business expenses ar
    13·1 answer
  • A processor housing that contains more than one processor is referred to as what term
    5·1 answer
  • Pease Answer ASAP. I need help with sources to answer the following question:
    15·1 answer
  • When considering barriers to international communication, companies should be aware that noise tends to increase the probability
    6·1 answer
  • Suppose that you are a big fan of the Harry Potter books. You would love to own a copy of the very first printing of the first​
    6·1 answer
  • Which one of the following statements is true? Debt instruments offer residual claims to future cash payouts. Bonds with call pr
    14·1 answer
  • At a price of $65, consumers demand 650 pairs of shoes, and sellers supply 650 pairs of shoes. The price of $65 (where quantity
    7·1 answer
  • Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives.
    5·1 answer
  • Suppose you have two friends who have the same underlying ability, took the same courses in college, and have the same GPA. One
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!